ECON 102-03 PRINCIPLES OF MACRO ANALYSIS
MWF 12:00–12:50 Butte 103
Professor: Chi-Hung Liao (Charles)
Office: BUTTE 651
Course WebCT: http://vista.csuchico.edu
Email Address: chliao@csuchico.edu
Office Hours: TBA
INTRODUCTION
The primary objective of this course is to enable you to “think like an economist.” You will be
able to apply economic way of thinking to everyday events. By the end of this class, you
should be able to explain economic questions such as opportunity cost, GDP, unemployment,
inflation, and how government influence the economy. You will also be able to answer the
challenges and limitations of government policies.
GOAL & OBJECTIVES
This course meets the requirements for General Education Area D2, Political and Economic
Institutions. The objective of this course is to understand the behavior of economic systems
at both the national and global level. Topics include the methodology of economics as a
social science, demand and supply, measurement of important macroeconomic variables,
models of growth, inflation, interest rates, unemployment, business cycles, stabilization
policy, and international finance.
REQUIRED TEXT
Brief Principles of Macroeconomics, 5th Edition, by Mankiw, Gregory. It is available from the
AS bookstore on campus and from other internet booksellers. Other readings will be
provided in class.
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EXAMS AND GRADING
There are four problem sets, two midterm exams, and one final exam. Here’s how the grade
breaks down:
Attendance
Problem Set 1-4
Mid Exam 1
Mid Exam2
Final Exam
Total
6%
20% (5% each)
22%
22%
30%
100%
The attendance will be taken periodically. The problem sets will be posted on the class
WebCT about a week before its due date, sometimes earlier. Every problem set is due at the
beginning of the class on the date specified in the topic outline on next page. For late
submission, 50% will be deducted every calendar day after the due date. Students are
encouraged to work together on problem sets.
The final exam will be cumulative. All exams consist of multiple-choice and short-answer
questions. These questions are both conceptual as well as numerical. You need to bring
your calculator (no cellphone is allowed) to the exam. Cellphone usage is strictly prohibited
during exams. If you took both midterm exams and your receive a higher score in the final
than one or both of the midterm exams, the lowest midterm exam score will be dropped and
replaced by the final exam score.
The exams are mandatory and no make-up exam will be given. If you must miss an exam
due to some irresistible causes (e.g. having a serious illness yourself), notify me as soon as
possible and prepare the appropriate proof such as doctor’s note. If your excuse is accepted,
your grade on the final exam will count for your grade on the missed exam. Work conflicts,
fatigue, leaving for home early for holiday are not acceptable excuses. You will get a zero if
you miss the exam without getting permission from me prior to the exam.
A: 92 or above A-: 90-91.99 B+: 87-89.99 B: 82-86.99 B-: 80-81.99
C+: 77-79.99 C: 72-76.99 C-: 70-71.99 D+: 68-69.99 D: 60-67.99 F: less than 60
DISABILITY SUPPORT SERVICES
It is the student’s responsibility to initiate requests for services at Disability Support Services.
Contact ext.5959 for more information or assistance.
CHEATING
You are reminded that I will report you to Student Judicial Affairs if I catch you cheating in any
quiz or exam. You are expected to do your work independently unless otherwise specified.
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TOPIC OUTLINE
The following is a tentative course outline. Topics may be modified as class time allows.
Due to the recent California budget cut, all CSU faculty members are required to take nine
furlough days (no pay leaves) each semester. Faculty members are required NOT TO
WORK on the furlough days. Please take advantage of those furlough days by working on
the problem sets or preparing for the exams.
DATE
TOPIC
Mon. Aug. 24
furlough day, no class
Wed. Aug. 26
CHAPTER
Introduction, Principles of Economics
1
Principles of Economics
1
Mon. Aug. 31
Thinking like an Economist
2
Wed. Sep. 2
Thinking like an Economist
2
Interdependence and the gains from trade
3
Fri. Aug. 28
Fri. Sep. 4
Mon. Sep. 7
Labor Day, no class
Wed. Sep. 9
Interdependence and the gains from trade
Fri. Sep. 11
Mon. Sep. 14
Interdependence and the gains from trade, supply and
demand
Supply and demand
Wed. Sep. 16
Supply and demand
4
Fri. Sep. 18
Measuring a nation’s income
5
Mon. Sep. 21
Measuring a nation’s income
5
Wed. Sep. 23
Measuring a nation’s income, measuring cost of living
Fri. Sep. 25
Measuring cost of living
Mon. Sep. 28
furlough day, no class
3
3, 4
4
6
6
Measuring cost of living
6
Fri. Oct. 2
Production and growth
7
Mon. Oct. 5
Review Session
Wed. Oct. 7
Midterm Exam 1
Mon. Oct. 12
Wed. Oct. 14
Fri. Oct. 16
Production and growth
Production and growth, saving, investment, and financial
system
Saving, investment, and financial system
Saving, investment, and financial system
7, 8
8
8
Grameen Bank Video
Wed. Oct. 21
Basic Tools of Finance
9
Fri. Oct. 23
Basic Tools of Finance
9
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Basic Tools of Finance, unemployment
Problem set 2 due
7
Mon. Oct. 19
Mon. Oct. 26
Problem set 1 due
5, 6
Wed. Sep. 30
Fri. Oct. 9
PROBLEM SET
Problem set 3 due
9, 10
3
Wed. Oct. 28
Unemployment
10
Fri. Oct. 30
furlough day, no class
Mon. Nov. 2
furlough day, no class
Wed. Nov. 4
Unemployment
10
Fri. Nov. 6
Monetary System
11
Mon. Nov. 9
Monetary System
11
Wed. Nov 11
Fri. Nov 13
Veterans Day, no class
Monetary System, inflation
Mon. Nov 16
Inflation
Wed. Nov 18
Review Session
Fri. Nov 20
Nov. 23-27
11, 12
12
furlough day, no class
Midterm Exam 2
Mon. Nov. 30
Open-economy Macroeconomics
13, 14
Wed. Dec. 2
Open-economy Macroeconomics
13, 14
Fri. Dec. 4
furlough day, no class
Mon. Dec. 7
furlough day, no class
Wed. Dec. 9
Open-economy Macroeconomics
Fri. Dec. 11
Review Session
Wed. Dec 16
Problem Set 4 due
13, 14
Final Exam 12:00-01:50 Butte 103
USEFUL WEBSITES
Wall Street Journal www.wsj.com
Economists www.economist.com
Economic Research from Federal Reserve Bank of St. Louis http://research.stlouisfed.org/fred2/
LexisNexis Academic search engine from CSUC library website
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